Euro

Greece Approves Austerity Bill

In Athens, the Greek lawmakers passed a crucial austerity bill on Thursday to secure the next round of international rescue loans from its creditors and stave off bankruptcy. This is despite the fierce political and civil opposition to more belt-tightening.

The bill which will further cut salaries and increase tax, won 153-128 in the 300-member Parliament.  The tough measures will also include rising the retirement age to 67, eliminating employee benefits and implementing laws to make it easier for businesses to fire and transfer civil servants who are currently guaranteed jobs for life.

Meanwhile, anti-austerity demonstrations massed around the parliament in Athens, hurling firebombs while the Greek police responded with water cannons, stun grenades and tear gas.

Greece is forced to implement these cuts to unlock 31.5 billion euro tranche aid form of its troika of international creditors – the European Union, European Central Bank and the International Monetary Fund.

Weak German Data Weighed Upon Euro

For the 24 hours to 23:00 GMT, EUR declined 0.38% against the USD and closed at 1.2757, after the European Commission downgraded its 2013 growth forecast for the 17-nation economy to just 0.1% from the 1.0% projected earlier this year. Furthermore, EU forecasted that the Euro-zone economy would shrink 0.4% in 2012, slightly worse than the 0.3% contraction forecasted earlier.

Forex Market Report

The EURO closed lower on Thursday and the lowrange close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI remain neutral to bearish signalling that sideways to lower prices are possible nearterm. Multiple closes below the reaction low crossing would confirm a trend change has taken place. If it renews the rally off July’s low, September’s high crossing is the next upside target.

The YEN closed higher on Thursday and the highrange close sets the stage for a steady to higher opening when Friday’s night session begins trading. Stochastics and the RSI are neutral to bearish hinting that a high might be in or is near. Closes below the 20day moving average would confirm that a shortterm high has been posted. If it renews the rally off September’s low, the 62% retracement level of the MarchSeptember decline crossing is the next upside target.

The SWISS FRANC closed higher on Thursday and the midrange close sets the stage for a steady opening when Friday’s night session begins trading. Stochastics and the RSI are turning neutral to bearish hinting that a high might be in or is near. If it renews this month’s decline, the 25% retracement level of the 20112012rally crossing is the next downside target. Closes above the reaction high crossing would confirm that a double bottom has been posted.

STERLING closed higher on Wednesday renewing the rally off October’s low. The highrange close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible nearterm. If it extends today’s rally, the reaction high crossing is the next upside target. If it renews the decline off September’s high, the 50% retracement level of the JuneSeptember rally crossing is the next downside target.